Financial Smart Book - Navy Federal Credit Union

[Pages:20]Navy Federal is proud to serve the armed forces, veterans, the DoD and their families. 1-888-842-6328

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Visit for more information. The Navy Federal More Rewards American Express? Card is issued and administered by Navy Federal Credit Union. American Express is a federally registered service mark of American Express and is used by the issuer pursuant to a license. Images used for representational purposes only; do not imply government endorsement. ? 2020 Navy Federal NFCU 1340 (7-20) 4

Financial Smart Book

This material is for educational purposes. The DoD does not favor or endorse any products or services offered by a financial institution. 1

OUR MEMBERS ARE THE MISSION?

At Navy Federal Credit Union, our members are at the heart of everything we do. As a member-owned and not-for-profit credit union, we have a mission-- to put members first by making their financial goals our priority.

Whether you're looking to buy your first car, open a checking account or save for retirement, we can help with expert advice, educational information and great products.

This Financial Smart Book will help you navigate through the many products and services we offer and provides educational information to help you make smart financial decisions. For more tips and information, visit makingcents, our online resource center.

If you'd like to speak to us, give us a call at 1-888-842-6328. Our stateside member reps are available 24/7 to answer your questions.

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UNDERSTANDING CREDIT

Credit Cards: Safer Than Cash and Helping You Build Credit Our credit cards can help you establish credit, track expenses, earn rewards and pay for unexpected expenses, but they're also safer to use than cash. At Navy Federal Credit Union, you're backed by our Zero Liability policy. That means you won't lose money because of reported, unauthorized transactions. Our secured credit card is a great tool for building or repairing credit. It works like any other credit card, except you determine your limit by depositing money to be held in your Membership Savings account. You'll earn rewards like other credit cards, and you'll earn dividends on your hold in your Membership Savings account.

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Loans: Help for Big Purchases or Expenses At some point, most of us will apply for loans to make big purchases like a car or house. When you do, it will be important to get answers to these questions:

?What's the loan's Annual Percentage Rate (APR)?

?What's the term (or length) of the loan? (This is how long you'll be making payments.)

?What terms are available? (For example, do you have to pay off in 2 years or can you spread payments out over 5, 10, 15 years, etc.?)

? Is a down payment or co-signer required?

? How much will the monthly payment be?

? Are there late charges? If so, how much?

?Are discounts available for Active Duty military members or members of another organization? (Navy Federal offers additional discounts for Active Duty military members.)

?Is there a penalty for early repayment of a loan? (Would you have to pay a fee for paying off your loan early?) 3

What's a Credit History, and Why Is It So Important? Your reputation as a borrower is based on your borrowing and repayment history. Good credit histories mean good credit scores, which are rewarded by lenders with lower rates and favorable terms. A poor credit history could cost you.

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All About Credit Reports A credit report is a history of your credit transactions that showcases your financial strengths and weaknesses.

What's in a Credit Report?

Personal Information

Your name, Social Security Number, birth date, current and previous addresses and employers

Credit History

Public Records

Inquiries

Specific information about credit accounts that were opened in your current name or that list you as an authorized user

Information from government sources like bankruptcy records, court records, tax liens, monetary judgments and overdue child support

Any time a person or company accesses your credit report, the inquiry is recorded and generally remains on your credit report for up to two years

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